(SOURCE: TRAINS Newswire)
BANGOR, Maine – A U.S. Bankruptcy Court in Maine has approved the sale of the
Montreal, Maine & Atlantic assets to Railroad Acquisition Holdings for
$16.85 million. Railroad Acquisition Holdings is an affiliate of New York-based
Fortress Investment Group, owner of the Florida East Coast.
“We think
this is a very good sale for the state of Maine, for the region, for the
railroad. Fortress is a proven operator. They have access to capital and I think
this will ultimately be a very good thing for the state and for the railroad,”
Robert Keach, the railroad company’s trustee in its bankruptcy proceedings,
tells the Bangor Daily News.
RailWorld holdings and other investors had
purchased the property from the bankrupt Iron Road Railways in October 2002 for
$50 million. There were no competing bids at that time.
Concurrent with
the railroad sale, Great Northern Paper announced that it would halt production
at its East Millinocket mill for up to 16 weeks while the company creates a new
business plan and retools production, according to the Daily News. Great
Northern filed for bankruptcy on the same day the MM&A was created, shutting
down for an extended period. At the time it constituted 25 percent of the short
line's traffic.
Monday, January 27, 2014
Monday, January 13, 2014
Thursday, January 9, 2014
French Firm Keolis Wins MBTA Commuter Rail Contract
SOURCE: Boston Globe - Martine Powers
Keolis — a French transit company with experience running rail systems in the United States, Europe, and Australia — will take over operation of the Massachusetts commuter rail system starting July 1, the state Department of Transportation’s board of directors decided Wednesday.
The company won the state’s largest operating contract in history with a bid that was 6 percent lower than that of the current operator, the Massachusetts Bay Commuter Railroad Co., which has operated the system since 2003.
MBTA general manager Beverly A. Scott, making one of the highest-profile decisions since she took over the T a little more than a year ago, said the agency will save $254 million over the term of a full 12-year contract.
“Keolis’s proposal presents the best combination of technical quality and price, and is more advantageous to the MBTA,” Scott said.
Keolis officials now must mobilize quickly to take over the system in just
over five months. By Feb. 1, the company’s Massachusetts operation, Keolis
Commuter Services, is expected to have a management team in place, Scott
said.
Keolis’s chief executive of international operations, Bernard Tabary, who flew from Paris Tuesday for the vote, said the company is prepared for a quick takeover.
“We’ve been working on this bid for over two years, and that includes mobilization,” Tabary said. “It’s going to be a lot of work, but it’s positive work, and we look forward to it.”
On Tuesday, state officials revealed the price tag for the contract: $2.68 billion over eight years, with the possibility for two two-year extensions that could bring the total price to $4.3 billion.
Keolis will be paid $304 million in the first year of its contract. This year, Massachusetts Bay Commuter Railroad was paid $316 million for base operations.
Much of the difference between the two bids came down to profits, Scott said. Keolis’s estimated profit margin was 77 percent lower than its rival, achieved in part with a promise to pay lower salaries for administrative positions.
The Massachusetts contract will be the biggest US system for Keolis. Some transit specialists suggested that Keolis may be willing to operate the system with a smaller profit margin in order to have a major American commuter rail system in its portfolio, a feather in its cap that could open doors to other high-profile transit contracts in North America. Keolis currently runs the Virginia Railway Express, a commuter rail in the suburbs of Washington, D.C., with 32 trains and 21,000 passengers daily.
Scott’s recommendation of Keolis as the winning bidder was unanimously approved by the MassDOT’s board of directors. Scott said the French company scored well on a number of criteria.
Aside from the pricetag, in other measures considered during the procurement process, Massachusetts Bay Commuter Railroad received an overall rating of acceptable, while Keolis received a higher overall rating of good. For example, Keolis has a better record on engineering services, management, and information technology, according to the T. But Massachusetts Bay Commuter Railroad has a better record of contracting with minority businesses.
The T will also save money on the new commuter rail contract because potential rewards that would be paid to the operator for meeting on-time performance — a controversial practice during Mass. Bay’s tenure — were removed from this contract. Scott also told the board that the contract contains more potential penalties for poor service, $12 million per year versus $3 million per year.
“Bottom line, in the new contract these incentives and offsets have been eliminated,” Scott said.
The new contract also increases daily inspection requirements for the trains, puts in place a remedial action plan if Keolis fails to meet expectations, and allows the T to relieve Keolis of certain duties if they are not performed well, for example, snow removal. If that were to happen, Keolis would not be paid for that work.
Before making its decision in a public meeting Wednesday, the MassDOT board listened to two hours of public comments.
The Rev. Bruce H. Wall, who had lambasted Keolis last month for allegations of discriminatory practices, made an about-face, saying that after talks with the company, he “wholeheartedly” endorsed Keolis.
James O’Leary, chairman of Massachusetts Bay Commuter Railroad and a former general manager of the T, told the board that he believed the procurement process had failed to conduct a thorough vetting of the companies, a move that was particularly galling, he said, after 10 years of partnership with the T.
“After all that, we had a sum total of a 45-minute interview,” he continued. “We can only conclude that our proposal was never seriously considered or understood.”
Ronald J. Hartman, chief executive of the rail division at Veolia Transportation, Mass. Bay’s largest shareholder, warned that the T did not know enough about the differences between the two companies. “My only question is, Do you really know what you’re getting with the proposal you’re about to review?” Hartman said. “And do you know what you would have gotten from our proposal, had you had that kind of in-depth discussion and evaluation?”
Scott countered that the T had conducted several written exchanges with each bidder and that the MBTA responded to more than 1,000 questions from both.
Though the MassDOT board voted unanimously in favor of Keolis, their questions seemed to indicate that it was not without some reservations.
Board chairman John R. Jenkins said he needed to know that the T had a plan in place to quickly usher in a new contractor, a process that will cost the T $9 million. Jenkins said Governor Deval Patrick had expressed concern that there might be interruptions in service for commuters.
“They’re going to have to get their feet on the gas pedal,” Jenkins said after the meeting. “They’ve got to keep this thing moving in order to make sure that we do get there on time.”
Janice Loux, another member of the board and a union organizer, said she was also concerned that the smaller pricetag for Keolis’s services could have an effect on union workers’ next contracts.
“The proposed savings are remarkable, just remarkable!” said Loux, with a touch of sarcasm in her voice. “Has the general manager verified that the savings are true and achievable? What are the impacts to the size of the workforce, labor agreements, and benefit packages?”
She continued, “I’m looking forward to seeing this workforce taken care of.”
Representatives of various commuter rail unions — including former state senator Steven A. Tolman, president of the Massachusetts AFL-CIO — expressed similar concerns, saying they were dismayed to learn of the change.
Daniel N. Tavares of the International Association of Machinists and Aerospace Workers said he doubted Keolis would be able to offer improved service while receiving millions less than its predecessor.
“There’s training, there’s a learning curve; a new company coming in just doesn’t sound responsible,” Tavares said.
Andrew Mannion, president of the International Brotherhood of Electrical Workers, said he was concerned that the deal would go the same way as the T’s much-criticized contract with Bay State Transit in 1999, a maintenance contract that was given to the lowest bidder, only to blow up when the company proved incapable.
Mannion said union officials would not accept lower salaries for members. “Under no scenario would we agree to terms that does not fairly compensate our members,” Mannion said.
Keolis — a French transit company with experience running rail systems in the United States, Europe, and Australia — will take over operation of the Massachusetts commuter rail system starting July 1, the state Department of Transportation’s board of directors decided Wednesday.
The company won the state’s largest operating contract in history with a bid that was 6 percent lower than that of the current operator, the Massachusetts Bay Commuter Railroad Co., which has operated the system since 2003.
MBTA general manager Beverly A. Scott, making one of the highest-profile decisions since she took over the T a little more than a year ago, said the agency will save $254 million over the term of a full 12-year contract.
“Keolis’s proposal presents the best combination of technical quality and price, and is more advantageous to the MBTA,” Scott said.
For the 127,000 people who ride the commuter rail’s 14 lines
each day, much will remain the same. The new contractor will have no control
over fare prices, and most of the trains and other equipment will remain the
same. The new company will, however, face more frequent inspections of its
trains and stiffer penalties for poor service.
Keolis’s chief executive of international operations, Bernard Tabary, who flew from Paris Tuesday for the vote, said the company is prepared for a quick takeover.
“We’ve been working on this bid for over two years, and that includes mobilization,” Tabary said. “It’s going to be a lot of work, but it’s positive work, and we look forward to it.”
On Tuesday, state officials revealed the price tag for the contract: $2.68 billion over eight years, with the possibility for two two-year extensions that could bring the total price to $4.3 billion.
Keolis will be paid $304 million in the first year of its contract. This year, Massachusetts Bay Commuter Railroad was paid $316 million for base operations.
Much of the difference between the two bids came down to profits, Scott said. Keolis’s estimated profit margin was 77 percent lower than its rival, achieved in part with a promise to pay lower salaries for administrative positions.
The Massachusetts contract will be the biggest US system for Keolis. Some transit specialists suggested that Keolis may be willing to operate the system with a smaller profit margin in order to have a major American commuter rail system in its portfolio, a feather in its cap that could open doors to other high-profile transit contracts in North America. Keolis currently runs the Virginia Railway Express, a commuter rail in the suburbs of Washington, D.C., with 32 trains and 21,000 passengers daily.
Scott’s recommendation of Keolis as the winning bidder was unanimously approved by the MassDOT’s board of directors. Scott said the French company scored well on a number of criteria.
Aside from the pricetag, in other measures considered during the procurement process, Massachusetts Bay Commuter Railroad received an overall rating of acceptable, while Keolis received a higher overall rating of good. For example, Keolis has a better record on engineering services, management, and information technology, according to the T. But Massachusetts Bay Commuter Railroad has a better record of contracting with minority businesses.
The T will also save money on the new commuter rail contract because potential rewards that would be paid to the operator for meeting on-time performance — a controversial practice during Mass. Bay’s tenure — were removed from this contract. Scott also told the board that the contract contains more potential penalties for poor service, $12 million per year versus $3 million per year.
“Bottom line, in the new contract these incentives and offsets have been eliminated,” Scott said.
The new contract also increases daily inspection requirements for the trains, puts in place a remedial action plan if Keolis fails to meet expectations, and allows the T to relieve Keolis of certain duties if they are not performed well, for example, snow removal. If that were to happen, Keolis would not be paid for that work.
Before making its decision in a public meeting Wednesday, the MassDOT board listened to two hours of public comments.
The Rev. Bruce H. Wall, who had lambasted Keolis last month for allegations of discriminatory practices, made an about-face, saying that after talks with the company, he “wholeheartedly” endorsed Keolis.
James O’Leary, chairman of Massachusetts Bay Commuter Railroad and a former general manager of the T, told the board that he believed the procurement process had failed to conduct a thorough vetting of the companies, a move that was particularly galling, he said, after 10 years of partnership with the T.
“After all that, we had a sum total of a 45-minute interview,” he continued. “We can only conclude that our proposal was never seriously considered or understood.”
Ronald J. Hartman, chief executive of the rail division at Veolia Transportation, Mass. Bay’s largest shareholder, warned that the T did not know enough about the differences between the two companies. “My only question is, Do you really know what you’re getting with the proposal you’re about to review?” Hartman said. “And do you know what you would have gotten from our proposal, had you had that kind of in-depth discussion and evaluation?”
Scott countered that the T had conducted several written exchanges with each bidder and that the MBTA responded to more than 1,000 questions from both.
Though the MassDOT board voted unanimously in favor of Keolis, their questions seemed to indicate that it was not without some reservations.
Board chairman John R. Jenkins said he needed to know that the T had a plan in place to quickly usher in a new contractor, a process that will cost the T $9 million. Jenkins said Governor Deval Patrick had expressed concern that there might be interruptions in service for commuters.
“They’re going to have to get their feet on the gas pedal,” Jenkins said after the meeting. “They’ve got to keep this thing moving in order to make sure that we do get there on time.”
Janice Loux, another member of the board and a union organizer, said she was also concerned that the smaller pricetag for Keolis’s services could have an effect on union workers’ next contracts.
“The proposed savings are remarkable, just remarkable!” said Loux, with a touch of sarcasm in her voice. “Has the general manager verified that the savings are true and achievable? What are the impacts to the size of the workforce, labor agreements, and benefit packages?”
She continued, “I’m looking forward to seeing this workforce taken care of.”
Representatives of various commuter rail unions — including former state senator Steven A. Tolman, president of the Massachusetts AFL-CIO — expressed similar concerns, saying they were dismayed to learn of the change.
Daniel N. Tavares of the International Association of Machinists and Aerospace Workers said he doubted Keolis would be able to offer improved service while receiving millions less than its predecessor.
“There’s training, there’s a learning curve; a new company coming in just doesn’t sound responsible,” Tavares said.
Andrew Mannion, president of the International Brotherhood of Electrical Workers, said he was concerned that the deal would go the same way as the T’s much-criticized contract with Bay State Transit in 1999, a maintenance contract that was given to the lowest bidder, only to blow up when the company proved incapable.
Mannion said union officials would not accept lower salaries for members. “Under no scenario would we agree to terms that does not fairly compensate our members,” Mannion said.
Tuesday, January 7, 2014
2014 Amherst Railway Society Railroad Hobby Show 1/25-26/14
2014 Amherst Railway Society Railroad Hobby Show
Eastern States Exposition Fairgrounds
West Springfield, MA
Saturday January 25, 2014: 9:00am - 5:00pm
Sunday January 26, 2014: 10:00am - 5:00pm
Maine Eastern Railroad to Host MEC 470 Fundraiser 4/12/14
The Maine Eastern Railroad has partnered with the non-profit New England Steam
Corporation to offer a public Touch-a-Train open house event on Saturday, April 12,
2014, as a fundraiser for the restoration of Maine Central steam locomotive #470.
Held at the Maine Eastern’s roundhouse in Rockland, ME, the Touch-a-Train event will
be a rare opportunity for the public to visit a working railroad maintenance facility. The
event is family-oriented, and children are encouraged to come and enjoy the sights and
sounds of American railroading. Visitors may climb aboard and explore the cab and
engine room of a -vintage FL9 diesel locomotive (built in 1957), recline in the comfortable
seats of a 1940s Maine Eastern passenger coach, and learn about railroad snow removal
operations while standing inside the Maine Eastern’s 1946-vintage snowplow.
Visitors will also be able to explore the Maine Eastern’s operating turntable, built in 1921,
and the 1922-vintage wooden roundhouse. The railroad’s dining car will also be on site,
selling beverages and snacks as visitors walk through.
The event coincides with the Maine Rail Group’s first annual Maine Rail Fair, being held
on the same date at the nearby Owls Head Transportation Museum. Visitors are
encouraged to visit both events and experience all aspects of Maine railroading.
Admission to the Touch-a-Train event will be free. However, the non-profit New England
Steam Corporation will be collecting donations towards the restoration of Maine Central
steam locomotive #470. The locomotive, currently on display in Waterville, ME, will be
operated on the Downeast Scenic Railroad after restoration is completed and will have
the opportunity to operate on the Maine Eastern, as well. Any and all donations, no
matter how small, can make a difference in the speed and success of #470’s restoration.
For more information about the New England Steam Corporation and its mission to
revitalize #470 and steam railroading in Maine, please visit www.newenglandsteam.org
or contact the organization at newenglandsteamcorp@gmail.com.
Corporation to offer a public Touch-a-Train open house event on Saturday, April 12,
2014, as a fundraiser for the restoration of Maine Central steam locomotive #470.
Held at the Maine Eastern’s roundhouse in Rockland, ME, the Touch-a-Train event will
be a rare opportunity for the public to visit a working railroad maintenance facility. The
event is family-oriented, and children are encouraged to come and enjoy the sights and
sounds of American railroading. Visitors may climb aboard and explore the cab and
engine room of a -vintage FL9 diesel locomotive (built in 1957), recline in the comfortable
seats of a 1940s Maine Eastern passenger coach, and learn about railroad snow removal
operations while standing inside the Maine Eastern’s 1946-vintage snowplow.
Visitors will also be able to explore the Maine Eastern’s operating turntable, built in 1921,
and the 1922-vintage wooden roundhouse. The railroad’s dining car will also be on site,
selling beverages and snacks as visitors walk through.
The event coincides with the Maine Rail Group’s first annual Maine Rail Fair, being held
on the same date at the nearby Owls Head Transportation Museum. Visitors are
encouraged to visit both events and experience all aspects of Maine railroading.
Admission to the Touch-a-Train event will be free. However, the non-profit New England
Steam Corporation will be collecting donations towards the restoration of Maine Central
steam locomotive #470. The locomotive, currently on display in Waterville, ME, will be
operated on the Downeast Scenic Railroad after restoration is completed and will have
the opportunity to operate on the Maine Eastern, as well. Any and all donations, no
matter how small, can make a difference in the speed and success of #470’s restoration.
For more information about the New England Steam Corporation and its mission to
revitalize #470 and steam railroading in Maine, please visit www.newenglandsteam.org
or contact the organization at newenglandsteamcorp@gmail.com.
Sunday, January 5, 2014
POSTCARD VIEW: Bangor & Aroostook #203 at St. Francis, Maine 1910
Vintage postcard view of a Bangor & Aroostook steam train at St. Francis Maine. The engine is #203, built in 1893 by Manchester Locomotive Works. The engine was rebuilt in 1921, and finally scrapped in 1930.
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